Employment Tribunal Fees

As you may or may not be aware, on 29th July 2013 we saw the introduction of employment tribunal fees for the first time in the UK.  The fees introduced by the coalition government aim to pay for some of the £74 million that it costs to run the service each year.  The ministry of justice argue that this cost should not be the responsibility of the UK tax payer, as it has been in the past.

 

Although the fees are subject to different challenges that are due to be heard at the end of September and late October the fee system is up and running.  There is a chance that individuals who pay the fees will get their money back, should the challenges be upheld.

The new fee system places a claim in one of two categories.  Type A is for the more straightforward cases such as notice pay or holiday entitlement.  The cases that fall under Type B are deemed to be more serious, for example discrimination or unfair dismissal. The fee payable will depend on which type of claim is to be made. A claimant will not only have to pay to issue the claim but also a hearing fee will be applicable should the case be taken to court.

 

See the table below for the cost of the new fees:

 

Fee Type	Type A Claims	Type B Claims
Issue Fee	£160	£250
Hearing Fee	£230	£950

The build up to the introduction of the fee system saw an increase of 10% in employment tribunal claims being made, from April to June 2013, compared to the previous year.  Only time will tell how the new fees impact on the levels of claims made, but early indications show that we expect to see a substantial drop between July – September this year.  We will keep you posted when the figures are in.

So what’s next?
 

From 1^st April 2014 a new step will be introduced in the process of making an Employment Tribunal claim.  Anyone who wishes to make a claim will need to contact ACAS first, regardless of the type of claim.  ACAS will require any claimant to complete an ‘Early Conciliation’ form, in which they will list basic details about themselves and their employer.  The form will not require them to list details about the dispute; however ACAS will make contact with them to offer conciliation services.  If the claimant accepts, ACAS will have one calendar month to negotiate a settlement.  Only if early conciliation is refused or fails during the time period, will the claimant be able to submit the claim to the Employment Tribunal.

What does this mean for employers?

The aim of early conciliation along with the introduction of tribunal fees is to reduce the number of cases that make it to the Employment Tribunal.  Previously employers have only been notified of a claim when they receive the letter informing them of the details.  The hope of the new system is that, employers will have the opportunity to resolve matters without the need for a tribunal hearing, saving them time and money.  Employers who are involved in a dispute with an employee will often sit tight and wait to see if a claim comes in.  However under the new system it will be important that employers take a view on the situation much earlier, as to whether they are prepared to negotiate a solution outside of a tribunal hearing.  Early conciliators are aiming to make contact with both the claimant and employer within one day of a claim being submitted, so be prepared as if this is the case, we can expect things to happen quickly!

If you require any further information on Employment Tribunal Fees, please do not hesitate to contact a member of the Tamar HR team.